At a glance
- Hard assets took in $5.3 billion more in new commitments than credit in the third quarter, Stanger reports.
- For advisors, the flow shifts due diligence: credit funds turn on spread, covenants and recovery, while hard-asset funds turn on construction starts, lease-up and closing conditions.
- Northwind Group closed NDF III at $1 billion, twice its $500 million target and the largest fund in its history, Connect CRE reported.
Alternative fundraising fell 14% to $134.4 billion through September, with credit fundraising down 48% and hard assets up 39%, according to Stanger.
Hard assets took in $5.3 billion more in new commitments than credit in the third quarter, Stanger reports. That gap measures new commitments, not existing assets, so it shows where allocators placed money during the quarter.
For advisors, the flow shifts due diligence: credit funds turn on spread, covenants and recovery, while hard-asset funds turn on construction starts, lease-up and closing conditions. The SEC's 2027 exam priorities target illiquid products, with examiners reviewing disclosures and whether recommendations matched client objectives. Reg S-P readiness is also on the list.
Northwind Group closed NDF III at $1 billion, twice its $500 million target and the largest fund in its history, Connect CRE reported.
Stanger's percentage changes do not include a vehicle count, so whether the credit decline came from fewer funds raising or smaller average funds is not clear.
Rexford sold $1.3 billion of Southern California industrial property in the third quarter. Richman Group refinanced three Florida communities with $225 million in permanent loans, and Richman says the loans run 10 years on all three; the syndicator is No. 6 on NMHC's 2026 list.
Power contracts, steel sites and a 135-day pause
NextEra Energy secured $5.7 billion for three federal energy hubs in Texas and Pennsylvania, carrying Japanese and U.S. Commerce backing and up to 10 GW of gas-fired generation, with completion slated for 2032.
TerraWatt proposed up to 1 GW of data center capacity on Alton Steel's 381-acre Illinois mill site, to be built in 200 MW blocks; the 2027 closing is contingent on rezoning and an Ameren Illinois study.
Local approval is where the calendar slips. Memphis City Council rejected an 18-month data center moratorium on a 6-6 vote with one member absent, then set a 135-day pause tied to Mayor Paul Young's 90-day review.
Silknet's Tbilisi data center, at 2 MW, is due in 2027, and Silk Cloud plans Blackwell Ultra GPUs against that schedule; GPU counts weren't disclosed. Fuse Energy has 128 GPUs due online in December.
| Transaction | Size | Detail |
|---|---|---|
| Rexford — Southern California industrial sale | $1.3 billion | 25 buildings, 5.5 million square feet; $500 million of the realignment remains |
| NextEra Energy — three federal energy hubs | $5.7 billion | Up to 10 GW gas-fired; Japanese and U.S. Commerce backing; completion in 2032 |
| Northwind Group — NDF III final close | $1 billion | Twice its $500 million target |
| Richman Group — three Florida communities | $225 million | 10-year permanent loans on all three |
| TerraWatt — Illinois data center | Up to 1 GW | 381-acre Alton Steel site, built in 200 MW blocks; 2027 closing contingent on rezoning and an Ameren Illinois study |
Private credit assets rose 17% to $4.1 trillion, according to the Alternative Credit Council's Oct. 22 report. One-sixth of surveyed funds reported non-accrual rates above 5%.
BDC common stocks fell again in the week to Oct. 23, with declines almost across the board, according to BDC Reporter's Oct. 24 recap.
Bank of America's study of 355 US family office decision makers found 79% of those with a prospective next-generation principal expect a larger alternatives share. It also found 92% use credit and only 27% use leverage consistently.
Moody's counted US life insurers' AI holdings at $85.2 billion, up 24%, or 1.4% of cash and invested assets, with guarantees and leases adding exposure outside the reported figure.
The next dated checkpoints are TerraWatt's 2027 closing, contingent on Alton rezoning and the Ameren Illinois study, and NextEra's 2032 completion.
Reported by PWD Editors from Stanger, Connect CRE, Alternative Credit Council, BDC Reporter, Moody's, Bank of America and SEC. Published . Corrections